Raisio plc Stock exchange release 28 June 2007 at 10.00 a.m.
Raisio plc plans to enhance its margarine and flake operations in Russia. The
company will wind down its margarine production at the plant in Istra, near
Moscow, and transfer production to a subcontractor. The goal is to improve
profitability by reducing overcapacity. Raisio has also decided to transfer
flake packaging to a Russian subcontractor in order to cut production expenses.
Raisio's CEO Matti Rihko says: “We do not have a need for our own production
capacity if it is not cost-effective. We will assign production in Russia to
subcontractors and focus on marketing our well-known brands and on developing
our distribution channel. Russia will continue to be one of Raisio's important
market areas.”
Closing down production in Istra means reduction of personnell by some 40
people. Continuing operations include sales, marketing, logistics and
administration. From the beginning of September 2007 all of Raisio's margarines
sold in Russia will be produced by the company's subcontractor according to
Raisio's recipe. Raisio is studying different options for the future use of the
Istra facilities.
Raisio's Food Division gets four per cent of its turnover from Russia. The
company holds approximately ten per cent of the market for tub margarines in
Moscow and St Petersburg. The volume of the Russian margarine market has
decreased in recent years, and no significant growth is expected in the near
future. The company holds approximately twenty per cent market share of the
retail market for traditional cereals in the main market areas in Russia. The
growth in flake market in is expected to continue this year. Raisio's well-known
brands in Russia include the Voimix and Dolina Skandi margarines and the Nordic
flakes.
RAISIO PLC
Heidi Hirvonen
Communications Manager
tel. +358 50 567 3060
Further information:
CEO Matti Rihko, tel. +358 2 443 2716 and +358 400 830 727
Distribution
Helsinki Stock Exchange
Key media
www.raisio.com